By Omar Bah
Finance Minister Seedy Keita has justified the decision to grant duty waivers on imported vehicles for the central government, saying it is aimed at alleviating financial burdens associated with vehicle purchases. He was speaking at a recent joint press conference organised by the Gambia Revenue Authority GRA.
According to the ministry of finance, motor vehicles purchased and imported by and in the name of the Government shall be exempt from all taxes and fees. This exemption, the ministry added, is only applicable to central government entities and excludes government agencies and public enterprises. The government also announced that taxable supply of goods or services in respect of a donor-funded project shall be zero-rated for the purposes of Value Added Tax while Ministries, Departments and Agencies, MDAs, are required to submit to the ministry of finance a list of all contractors and copies of contracts.
Also, according to the minister, tax on green tea is abolished, while a one percent tax rate on the sales and purchase of air tickets has been introduced.
This waiver includes exemptions from import duties and VAT, aligning with a Cabinet resolution to enhance government operations and reduce costs.
However, concerns have been raised regarding the impact of such exemptions on domestic resource mobilisation, as these waivers could strain fiscal resources.
But the minister said specific guidelines are being developed to ensure proper implementation and prevent misuse of the duty waiver policy.
“This was informed based on the principles that central government’s procurements are easier to manage and monitor and that central government is not a revenue generating entity. The other MDAs are revenue-generating, so their ability to fund their taxes on those vehicles are there,” he said.
He said while the MDAs are able to raise and manage their own revenue, the central government, on the other hand, doesn’t have the authority to spend on its own.
The Commissioner General of GRA, Yankuba Darboe, said though the central government doesn’t pay taxes for imported vehicles, all their imports are captured by the GRA so that the revenue forgone is calculated at the back end, and by the end of the year “we will put it together, and that would dictate what would happen the following year”.
GRA’s D20 billion revenue
Minister Keita commended the GRA for beating all odds to surpass its 2024 revenue target of D19.2 billion. The authority registered a whopping D20.8 billion in 2024.
“Behind these numbers are the sweat and tears of taxpayers and the staff of GRA. We place on record our unwavering support and appreciation to all stakeholders concerned because when we started this journey, it was almost like a mission impossible. and even some of the development partners didn’t trust our numbers, but we surprised them. This is what self-reliance can do,” he said.
Minister Keita added that the government will continue to provide its unwavering support. to the GRA and any institution that is performing in the country.
“This is the first time in the history of this country that the GRA has crossed the D20 billion mark,” he stated.
He said the country’s revenue collection has increased over 79 percent over the past five years.
“That was only possible through the introduction of reforms, digitalisation, and simplification of processes at the policy level. At the ministry, we wil stand by them to leverage technology,” he said.
Minister Kieta argued that the GRA revenue performance has not come about through the increases in tax rates.
“In fact, for 2025, the tax rates will come down, particularly when it comes to pay as you earn, and that tax rebate is just not to the low-earning civil servants but any employee in this country is given additional D12,000 tax-free income,” he said.
He disclosed that tax-free income has been increased from D24,000 per annum to D36,000.
“What this means is that the government is literally giving D3000 as tax-free income to every employee in this country. This is possible because we want the efficiency gains to spread”. He said the government is committed to maintaining its non-interference in GRA’s activities,” he noted.
